Technical outlook and chart setups:
The GBP/CHF pair seems to have completed its first wave of a 3-waves corrective drop expected towards the level of 1.4320. The pair is now expected to rally towards 1.4550/60 (wave 2) from here before reversing lower again. Also note that the pair is bouncing off the Fibonacci 0.382 support now. A temporary rally is expected. It is recommended to initiate fresh short positions around the level of 1.4550/60 with risk around 1.4660. Immediate interim support is found at 1.4420 followed by 1.4320, while resistance is seen at 1.4640/50. Bulls should be looking for an opportunity to resume the previous rally after a drop towards 1.4320.
Trading recommendations:
Initiate fresh shorts at 1.4550, stop at 1.4650, a target is at 1.4330. Then go long.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com